China To Get Tesla Model X Before Europe

Approximately one week ago, we reported on the launch of the Tesla Model X in China (full details here).

Now, as Bloomberg’s Dana Hull points out, China will in fact receive the Model X well before it arrives in Europe.

As Hull reports:

“Tesla Motors Inc. has started taking orders for its Model X in China with deliveries to begin in the second quarter, giving customers in the world’s largest auto market access to the new sport utility vehicle before it debuts in Europe.”

This is a departure from the norm for Tesla, as its Model S launched in Europe way before it became available in China.

Hull explains:

“Tesla, whose China rollout for the Model S sedan got off to a rocky start, wants to take advantage of the nation’s hot market for SUVs, particularly luxury models. About 21 million light vehicles were sold last year in China, where German brands such as Audi, BMW and Mercedes-Benz dominate the premium segment.”

Hull reached out to Michael Dunne, a strategic adviser on the Asian auto market, for comment on Tesla’s Model x launch in China: Dunne stated:

“This is Tesla’s opportunity to establish the brand. Tesla’s success in China will hinge on its ability to establish that it is a distinctive, alluring and exceptional brand to own. With the Model S they struggled.”

A higher price in China is actually a good thing. The struggles for the Model S has very little to do with price.

First, the expectations were overblown. The Model S sells quite well in China, just not relative to the expectations built up by speculative buyers.

The Model S isn’t oriented towards owners that do not drive. The X fits much better with the Chinese market – they do want the falcon wing doors as a Chinese multi-millionare/billionare wants to show up in the right kind of look.

You do have a point about higher priced item. That might mean that when (if?) X is ever produced in China, it would mean HUGE profits for Tesla by keeping the price the same as pre-tariff level without paying tariff. Then they could invest more in China when the market is even bigger than what it is today.

Speaking of high prices, companies are selling jars and cans of fresh air from abroad for big bucks. $$$ A jar of air from the English countryside is selling for $115 a pop, and business is booming! It’s the greatest business idea since pet rocks.

What does that prove? That article has various people beating up luxury vehicles. Certainly not a Tesla only circumstance. Matter of fact, it shows that Tesla belongs amongst the notable marquee brands.